Guru Investment Theses on General Dynamics Corp

Bernard Horn Comments on General Dynamics - Oct 30, 2014

General Dynamics (GD) was the only positive performer in the sector, as the company capitalized on three business trends: 1) its Gulfstream business jet sales reached pre-recession levels, with a strong order book; 2) it received a $300 million contract from the U.S. Navy to build nuclear submarines (with the prospect for orders of more than $1.5 billion) and 3) it signed a $5.7 billion deal with the British government for new armored fighting vehicles. In a world of continued geopolitical turmoil, General Dynamics’ defense business has been an effective hedger and performer.

Top Ranked Articles about General Dynamics Corp

General Dynamics (GD) was the only positive performer in the sector, as the company capitalized on three business trends: 1) its Gulfstream business jet sales reached pre-recession levels, with a strong order book; 2) it received a $300 million contract from the U.S. Navy to build nuclear submarines (with the prospect for orders of more than $1.5 billion) and 3) it signed a $5.7 billion deal with the British government for new armored fighting vehicles. In a world of continued geopolitical turmoil, General Dynamics’ defense business has been an effective hedger and performer. Read more...

Business Description

General Dynamics Corp was incorporated in Delaware in 1952. The Company is an aerospace and defense company that offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; shipbuilding; and communication and information technology systems and solutions. It has four business segments, Aerospace, Combat Systems, Marine Systems and Information Systems and Technology. The Company Aerospace segment designs, manufactures and outfits Gulfstream business-jet aircraft, provides aircraft services including maintenance and repair work, fixed-based operations and aircraft management services and performs aircraft completions for aircraft produced by other OEMs. Its Combat Systems segment offers systems engineering, spanning design, development, manufacture and support of tracked and wheeled military vehicles, weapons systems and munitions for the United States and its allies. Its product lines includes wheeled combat and tactical vehicles, main battle tanks and tracked combat vehicles, munitions and armaments, axle and drivetrain components and aftermarket parts, and support and sustainment services. The portfolio of platforms in U.S. military vehicles business includes the Stryker wheeled combat vehicle, the Abrams main battle tank and the Buffalo route clearance vehicle. The Company's Marine Systems segment designs, builds and supports submarines and surface ships. Its portfolio of platforms and capabilities includes nuclear-powered submarines, surface combatants, auxiliary and combat-logistics ships, commercial Jones Act ships, design and engineering support, and overhaul, repair and lifecycle support services. The Company's Information Systems and Technology segment is a three-part portfolio providing technologies, products and services that address military, federal/civilian and commercial information-system needs. It provides support for product design, development, integration, production and sustainment in secure mobile communication systems; information technology solutions and mission support services; and intelligence, surveillance and reconnaissance, naval control systems and cyber security solutions. The Company's primary customer is the U.S. Department of Defense. It also has contracts with other U.S. government customers, including the intelligence community, the Departments of Homeland Security and Health and Human Services and first-responder agencies, and other commercial customers. The Company is subject to a variety of federal, state, local and foreign environmental laws and regulations.

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